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Indrani Dutta

KOLKATA, Feb. 4

THE Union Power Ministry has formulated a six-level intervention strategy for boosting the power sector, as it is felt that a fragmented approach to any single particular aspect would not solve the problems the sector is facing.

The first three levels are - national level, covering policy and legal framework, State level - covering tariff fixation, unbundling and subsidies - and SEB level, covering tariff restructuring, accounting and management information system.

The fourth level of intervention would be at the distribution circle level covering outage reduction, reliability and accountability.

At the feeder level, the strategy would cover the areas of voltage stabilisation, metering, and correction of the ratio between high tension and low tension.

The final rung is at the level of the consumer - covering hitherto unattended areas like satisfaction, metering and billing through better demand and supply-side management.

Altogether, 10 control subjects have been identified and listed in the blueprint. These include augmenting generating capacity, accelerating development of hydro projects, streamlining power wheeling and transmission capability and improving grid discipline, distribution reforms, energy conser- vation and reducing cost of power, rural electrification and generating awareness among the masses on need for power reforms.

It is now proposed that this strategy package, cleared by the Power Minister, Mr Suresh Prabhu, be implemented in a holistic manner even as the Government launches a programme to generate a consensus on these issues, especially among the States.

"Power being a concurrent subject - the main agents of change would be the State electricity boards - there is a distinct need for a symbiotic relationship between the Centre and the States,'' the Minister said. States currently control 60 per cent of the generating capacity, 70 per cent of the total transmission network and almost 100 per cent of the distribution system.

However, it is clear that the much-needed consensus on core reforms is not easy to come by unless the issues are de-politicised.

Mr Prabhu has already sent drafts of his plans and programmes on the power sector to MPs.

Sources said that the Ministry was now pursuing a five-point programme for priority action.

This includes providing power on demand by 2012, making the sector commercially viable and self-sustaining, providing reliable power at an affordable price, achieving environmentally sustainable power development and promoting general awareness so as to achieve a consensus on reforms.

Referring to energy conservation and reduction of the cost of power, sources said that rules are under finalisation to give effect to the Energy Conservation Act, adding that a detailed Action Plan on Demand Side Management was also being prepared.

Benchmarks for important cost segments of various power projects have also been identified based on the manual on International Good Practices.

This should enable the utilities to explore possibilities for cost reduction and also bring about a certain amount of transparency.

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Power Ministry draws up 6-level strategy

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